The Best Performers In Singapore’s $3 Billion Stock Club

A recent report by bourse operator Singapore Exchange Limited (SGX: S68) showed that the Singapore stock market has 45 companies with market capitalisations of over $3 billon (as of 15 August 2016). The report also provided some insights on the returns of these large stocks.

The performance of the SPDR STI ETF (SGX: ES3), an exchange traded fund that mimics the fundamentals of the Straits Times Index (SGX: ^STI), can serve as useful context for the returns generated by the large companies in the market. In the five years ended July this year, the SPDR STI ETF has generated a total annual return of 0.77%.

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A recent report by bourse operator Singapore Exchange Limited (SGX: S68) showed that the Singapore stock market has 45 companies with market capitalisations of over $3 billon (as of 15 August 2016). The report also provided some insights on the returns of these large stocks.

The performance of the SPDR STI ETF(SGX: ES3), an exchange traded fund that mimics the fundamentals of the Straits Times Index(SGX: ^STI), can serve as useful context for the returns generated by the large companies in the market. In the five years ended July this year, the SPDR STI ETF has generated a total annual return of 0.77%.

Here’re the top five performers in the $3 billion club over the last five years (figures as of 15 August 2016, unless otherwise stated):

Thai Beverage Public Company Limited(SGX: Y92) comes out tops in terms of performance. The Thailand-based company, whose main business activity lies in the distillation of spirits and the brewing of beer, has managed to deliver a total return of almost 370% over the past five years. In fact, Thai Beverage is also the top performer (in terms of returns) for the $10 billion stock club and the $5 billion stock club. It has a market cap of $25.7 billion.

In second place would be SATS Ltd(SGX: S58). The airline caterer has generated a total return of 199.8% in the previous five years. SATS weighs in with a market cap of $5.4 billion. Revenue growth for the company in its last reported quarter was tepid, but its profit managed strong growth of 29%.

ComfortDelGro Corporation Ltd (SGX: C52) is third in the list. The land transport giant has a market cap of $6.2 billion and its total return over the last five years is a handsome 162.1%. ComfortDelGro saw its revenue dip in the second-quarter of 2016 partly due to a decline in the British pound after Brexit.

Mapletree Commercial Trust(SGX: N2IU) swoops in to clinch the fourth spot. The real estate investment trust (REIT) counts the popular Vivocity shopping mall amongst the five properties it owns. Mapletree Commercial Trust weighs in with a market cap of S$3.9 billion and has produced a total return of over 143% in the last five years.

Another REIT, Mapletree Industrial Trust(SGX: ME8U), takes the fifth spot. The aptly-named industrial REIT registered a total return of around 118% over the last five years. Mapletree Industrial Trust, which has a total of 85 properties (all located in Singapore) in its portfolio, has a market cap of around S$3.2 billion.

To be sure, size does not equal performance. Genting Singapore PLC(SGX: G13) has a market cap of $9.1 billion, and yet its total return in the last five years is a negative 52.5%. The casino and integrated resort operator is hardly alone. Agri-business firm Wilmar International Limited(SGX: F34), marine engineering and property development conglomerate Keppel Corporation Limited(SGX: BN4), and oil palm producer Golden Agri-Resources Ltd (SGX: E5H), are all multi-billion dollar companies that have negative five-year total returns.

We should do our due diligence before committing our hard earned cash into stocks. This applies whether we are looking at companies that have a market cap of above $3 billion, or otherwise.

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The information provided is for general information purposes only and is not intended to be personalised investment or financial advice. Motley Fool Singapore contributor Chin Hui Leong doesn’t own shares in any companies mentioned.

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All information is provided by The Motley Fool Singapore Pte Ltd, a licenced investment advisory research provider (MAS Licence No. FA100056-1). Any information, commentary, recommendations or statements of opinion provided here are for general information purposes only. It is not intended be personalised investment advice or a solicitation for the purchase or sale of securities. Before purchasing any discussed securities, please be sure actions are in line with your investment objectives, financial situation and particular needs. International investors may be subject to additional risks arising from currency fluctuations and/or local taxes or restrictions. The information contained in this publication are obtained from, or based upon publicly available sources that we believe to reliable, but we make no warranty as to their accuracy or usefulness of the information provided, and accepts no liability for losses incurred by readers using research. Recommendations and opinions are subject to change without notice. Please remember that investments can go up and down, including the possibility a stock could lose all of its value. Past performance is not indicative of future results.